Bahrain’s central bank is developing regulations for stablecoins to reduce transaction costs and increase financial access.
Making the Digital Asset Space Safer
Bahrain is taking proactive steps to regulate stablecoin issuance in order to enhance financial inclusivity and lower transaction expenses. The Finance and National Economy Minister Shaikh Salman bin Khalifa Al Khalifa recently announced that the central bank is in the process of drafting these regulations.
In response to inquiries about digital asset regulation from legislator Hisham Al-Asheeri, Al Khalifa emphasized the importance of creating a secure environment within the digital asset space. The Central Bank of Bahrain is committed to implementing laws and regulations that promote the safety of investments and mitigate risks associated with trading on unregulated platforms.
As a nation known for its crypto-friendly stance, Bahrain has issued licenses to various cryptocurrency exchanges, such as Coinmena and Binance. This regulatory framework has enabled businesses like Stc Bahrain to accept cryptocurrencies as a form of payment. However, there are concerns that without proper regulations, more companies may hesitate to adopt digital assets and stablecoins.
To address these concerns, Al Khalifa revealed that the upcoming legislation will grant the central bank the authority to monitor activities and transactions of licensed entities using blockchain technology. Violations of the regulations could result in penalties ranging from fines to suspension of services or criminal prosecution.